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DEF is a non-partisan, independent political blog based in the
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Longtime "Blairmont" watchdog Michael Allen sat down with PubDef Friday to discuss Governor Matt Blunt's veto just hours earlier of the giant economic development bill that included a $100 million tax credit for one man, developer Paul McKee.
In addition to giving his reaction to the veto, Allen, an Old North resident who said he fully supports the state earmarking millions of dollars in tax credits to rebuild north St. Louis, suggested ways that McKee and state legislators can craft a better piece of legislation next year — one which residents and local elected officials can support.
A source tells PubDef that Gov. Matt Blunt is going to veto HB 327, the contoversial bill containing a $100 million land assemblage tax credit, within the hour.
UPDATE: It's done. Here's the press release...
Blunt Vetoes Giant Bill Packed with Excess Spending
Governor Says Good Wages, Health Care Are Quality Jobs ‘Musts’
JEFFERSON CITY - Gov. Matt Blunt today vetoed tax-credit legislation that came to his desk loaded down with excessive spending, including incentives for businesses that fail to pay average or above-average wages and fail to provide employees with health coverage.
In vetoing House Bill 327, the Governor said he is prepared to summon a special legislative session if legislative leaders are willing to pass a more restrained bill that will achieve the good objectives of this legislation such as expanding the successful Quality Jobs program - while setting aside special projects and excessive spending items.
The vetoed bill would have spent an estimated $200 million in excess of Quality Jobs reauthorization, and there were unknown expenses associated with the legislation that could cost Missourians even more. The legislation drew Blunt’s veto after growing large and expensive with a laundry list of projects that included creation of an “eminent domain train,” tax breaks for “phantom flights” to Europe and a provision that would harm many existing Missouri employers by putting them at a competitive disadvantage.
“There are important initiatives in the bill,” Blunt said. “The Quality Jobs Act we created in 2005 has helped Missourians create more than 94,000 new jobs since 2005. Ultimately, however, it became loaded with excessive spending that simply does not benefit the average Missouri taxpayer. There is no difference between spending taxpayer dollars by appropriations and spending them by tax credits. Each should meet the same test of fiscal responsibility.”
“I am committed to signing a fiscally responsible expansion of Quality Jobs, Enhanced Enterprise Zones and the New Market Tax Credits. The savings from a sounder bill will benefit the state for decades to come,” Blunt added.
Among the sections identified as problems by the governor:
Jobs and Health Care
Of greatest concern to the governor, the vetoed bill allowed Quality Jobs tax incentives to go to businesses that pay employees less than the average county wage and, more significantly, do not offer health care coverage to their employees. Governor Blunt created the Quality Jobs Act to help generate new family-supporting jobs with good pay levels and health coverage, but the vetoed legislation would have provided the same benefits to businesses that pay lower wages and do not offer health care.
“I will insist that job-creating incentives be provided to employers who pay at least average wages and provide health coverage,” Blunt said.
Eminent Domain Trains
Another part of the bill sought to provide eminent domain power at the behest of a Colorado company that is seeking rail tracks and other property to run “historic rail cars” as excursion entertainment.
Blunt had three objections to the provision. First, it provided a public bounty for dinner theater trains, an activity that offers, at most, the very smallest of effects on the economy. Second, it could complicate the governor’s plan to expand the Katy Trail on the Rock Island rail corridor. Third, Blunt said the state must not slide down “the slippery slope” of piecemeal awards of the power to take private property against an owner’s wish. Last year, Blunt signed into law on the nation’s strongest safeguards for private ownership, which was endangered by the U.S. Supreme Court’s pro-taking decision in Kelo versus New London, Conn.
Blunt said, “We must not extend the power of eminent domain at the very time we have been successfully restricting it.”
Phantom Flights to Europe
Blunt said transportation infrastructure improvements would have suffered from a new aviation fuel tax exemption offered for non-existent, future international flights that originate in Missouri and cross an ocean. The Missouri Department of Transportation opposed the provision and said transportation improvement would lose $400,000 in revenue.
Blunt said, “At present, no transoceanic flights originate in Missouri. Of additional concern, as written, it is possible that airlines could claim the exemptions for flights that merely connect with trans-ocean flights in U.S. cities in other states.”
Hurting Established Employers
The governor also expressed concern with a change in state tax laws that could cause established Missouri employers, particularly distribution companies, to operate at a competitive disadvantage. House Bill 327 would give tax breaks to new distribution companies, while denying the benefit to existing businesses.
Summary
“We have established a new economic climate that allows innovative Missourians to more easily create new jobs and quality jobs in high numbers, attracts new businesses, and strengthens established employers,” Blunt said. “The new direction in our economy relies on the enterprising spirit of the people and the Missouri work ethic. New state policies are supporting and empowering this growth by balancing a budget that was $1 billion in the red when I became governor, by establishing clear incentives for high-quality, family-supporting jobs with health care coverage, and by protecting our small business owners and large employers from the long-ignored threats of frivolous lawsuits and other regulatory burdens.”
Since taking office Blunt has made it priority to restore balance to the state’s budget. Overcoming an inherited $1 billion deficit he was able to balance the state’s budget, make important investments in Missouri’s future and secure $200 million for priorities like education and health care in future fiscal years.
The governor signed budgets that include more than $675 million in education aid to benefit Missouri students of all ages including more than half a billion dollars for K-12 education. His Lewis & Clark Discovery Initiative generates an additional $335 million to strengthen Missouri’s colleges and universities. Blunt secured these significant increases without a single penny of job killing new taxes.
The governor has helped create a jobs climate that has enabled Missouri employers to create more than 94,000 new jobs since January 2005.
UPDATE 2:A second press release...
What Missourians are Saying About Gov. Blunt’s Veto of House Bill 327
The following Missourians today voiced their support for the governor’s veto of House Bill 327:
“We appreciate the Governor’s careful consideration of House Bill 327 and recognize the difficult decision he had to make on this legislation. We also support his call for a special legislative session to address the Quality Jobs program and Enhanced Enterprise Zones. These are core economic development programs, which must be expanded in order for our state to create jobs and encourage growth.” Jim Anderson President, Springfield Chamber of Commerce
“The governor was right to veto House Bill 327. Time and again legislators are told by special interest lobbyists that if only their particular industry could be granted an exemption from state taxes that will produce economic growth, but they never discuss how these giveaways hurt Missouri taxpayers. This legislation was packed with special interest projects and excessive spending that would have taken Missouri in the wrong direction. I applaud Governor Blunt for protecting Missouri taxpayers by using his veto pen to stop House Bill 327 from becoming law.” Matt Bartle State Senator, District 8
“I was concerned all along that the good in the bill was not enough to out weigh the concerns in other provisions. I know this was not an easy decision but the Governor made the right decision.” Ed Emery State Representative, District 126
“I supported the Governor’s priorities in this bill (Quality Jobs and Enhanced Enterprise Zones), as well as the Land Assemblage provision. It is a shame that these important economic development enhancements had to be lost due to unrelated, costly amendments. I hope the general assembly will be able to enact these three provisions quickly.” Chuck Gross Former State Senator and Budget Chairman
“This legislation would have put Cape Girardeau County into a conflict of over $500,000 for county revenue. We cannot afford this amount of reduction from our budget, if it is withheld. Gerald Jones Presiding Commissioner, Cape Girardeau County
“I agree with Governor Blunt’s decision to veto House Bill 327. There were an awful lot of good things in this bill but when you add up the plusses and the minuses the minuses far outweighed the good.” Charlie Kruse President, Missouri Farm Bureau
“I applaud Gov Blunt for giving the General Assembly a second chance to craft sound public policy that continues to facilitate job growth and economic development while practicing responsible stewardship of the people’s money and ensuring Missouri’s healthy and solid financial foundation.” Brad Lager State Senator, District 12
“I support Governor Blunt’s veto of House Bill 327. In my opinion, the bill’s negative ramifications far outweigh its positive characteristics. The uncertain fiscal impact on the state is a cause of great concern, as is the unilateral exemption of certain products and materials from sales and use taxes at the local level. Quality Jobs is an extremely important economic development tool. I urge the General Assembly to pass a clean, stand-alone bill to allow Quality Jobs to be workable and successful.” Ken McClure Gov. Blunt’s former Chief of Staff and A former head of the Missouri Senate Appropriations Committee Staff
“Brick and mortar retailers across the state who have to compete with foreign competitors appreciate the governor’s veto of House Bill 327, and by this action keeping the playing field level for Missouri businesses.” David Overfelt President, Missouri Retailers Association
“House Bill 327 would have had a dramatic negative impact on funding for highways and bridges in Missouri. By vetoing this bill, Governor Blunt is showing a strong commitment to transportation in our state, which means fewer fatalities on our roadways and greater economic opportunities for our citizens. I know the governor had to make a difficult decision, but it was the right decision. I thank him for his outstanding leadership on this issue and for safeguarding our critical transportation system.” Pete Rahn Director, Missouri Department of Transportation
“Governor Blunt’s veto of House Bill 327 is an example of true leadership. While House Bill 327 contains a great number of good economic development tools including some of my own amendments, the final bill missed a very important step – the conference committee. By vetoing 327, the legislature can come back with the good ideas and discard those we cannot afford.” Delbert Scott State Senator, District 28
“House Bill 327 gets in the way of keeping Missouri on a pro-growth path.” Rex Sinquefield President, Show-Me Institute
Governor Matt Blunt Office of the Governor Room 216, State Capitol Building Jefferson City, Missouri 65101
Dear Governor:
As Alderwoman of the 5th Ward of the City of St. Louis, I write this letter requesting your humble consideration to please veto HB 991 "Land Assemblage Tax Credit Act" pertaining to the "Project" as described in the media, targeted primarily for the 5th Ward of the City of St. Louis.
My concern from the beginning is there must be community input on this major economic development. Residents, Business Owners, and other stakeholders of the 5th Ward that I represent deserve nothing less and they all are citizens of the State of Missouri.
Please feel free to call me if there is further understanding of this matter required at (314) 941-0186. Thanking you in advance for your consideration and support.
Respectfully yours,
April Ford-Griffin Alderwoman, 5th Ward City of St. Louis
Very few of the tens of thousands of people who attended this week's V.P. Parade know anything at all about its history.
Local Civil Rights legend Percy Green sat down with PubDef.net yesterday to discuss to history of the Veiled Prophet (V.P.) Parade and tell us the story of how in 1972 he led his group of militant ACTION activists in an operation to unveil the mysterious prophet.
License Collector Michael McMillan and Collector of Revenue Gregory F.X. Daly have teamed up to continue to bring government closer to the community.
They are sponsoring three business license and resource fairs throughout the City. Several economic development assistance agencies will be present along with financial institutions to assist companies in maintaining and expanding their business opportunities in the City.
Through these fairs, the business community will learn about the public and private resources designed to encourage their growth. In addition, any business owners in need of a license will have an opportunity to pay any licensing fees.
McMillan and Daly plan to hold these fairs on an annual basis in an attempt to grow and promote business in the City.
The events will include representatives of the St. Louis Development Corporation, the City's Business Assistance Center and Building Division, the Missouri Small Business Development Center, the U.S. Small Business Administration, Bank of America, Commerce Bank, Gateway National Bank, Pulaski Bank, Regions Bank, Royal Bank and U.S. Bank.
McMillan said, "Our goal is to provide a resource to the community that will be valuable to our City's companies while encouraging these businesses to get up to date with their license fees."
"I think it is our duty to do anything we can to enhance revenue for our emergency service personnel, as well as providing additional resources for our parks, streets and schools," said Daly.
The fairs will be hosted at three different locations and are scheduled for the following dates:
July 11, 2007 10:00 am - 2:00 pm Bishop DuBourg High 5850 Eichelberger St. St. Louis, MO 63109
July 17, 2007 10:00 am - 2:00 pm Wohl Center 1515 N. Kingshighway St. Louis, MO 63113
July 27, 2007 10:00 am - 2:00 pm Harris Stowe State University Emerson Center 3026 Laclede Avenue St. Louis, MO 63103
For more information, please call Darius Chapman or Lisa Udofia at 314-622-4528.
CLINTON ON TRUMAN — Former President Bill Clinton... Ahhhh, remember the Clinton Years? Stock market through the roof, no American cities destroyed by terrorism or flood, general peace and prosperity — The Good Ol' Days. Oh how we miss thee... Anyway, back to my thought... Clinton is going to be in Independence, MO today speaking on the legacy of Missouri's only U.S. President, Harry Truman.
If you're contemplating the four-hour drive, don't bother. Tickets are sold out. Hey, it's Bill.
WANTED: MINORITY LEADER — Earlier this week, it broke that State Rep. Jeff Harris (D-Columbia) was stepping down as House Minority Leader. MissouriPolitics.net and Jason Rosenbaum think current Asst. Leader Paul LeVota (D-Jackson County) is the leading figure to replace Harris.
THE "I WISH..." LAW — Governor Matt Blunt has been zig-zagging across the state in recent weeks signing bills into law. As a matter of fact, the Gov will be in Maplewood and St. Charles later today to sign two more. But last week, Blunt signed one of the more popular new laws — at least among the fellas in the barbershops.
Called the "Castle Doctrine" by supporters, the new law allows people to use deadly force on intruders to their homes or carjackers. In addition to shielding people against lawsuits, the bill also removes the requirement that a person flee from an attacker.
In the barbershops, it's being called the "I Wish a Muthafucka Would" law after Cedric the Entertainer'spopular comedy routine (video clip NSFW).
A small group of St. Louis firefighters carrying picket signs followed Fire Chief Sherman George as he walked in the V.P. Fair yesterday.
The signs called on George to promote officers in the department following a federal court ruling which said that the exam used for promotions was fair.
Last week, the firefighters' union took out an ad in the Post-Dispatch calling on the public to pressure George. Mayor Francis Slay also recently joined the call for the fire chief to act.
Our friends over at "The Real Deal" radio show tell us that former St. Louis Public School Board President Veronica O'Brien will be on the show today at 4:15 p.m.
The show airs on WGNU 920AM and you can listen online at www.wgnu.net.
KWMU is reporting that a judge this morning temporarily barred a law that would let lay midwives deliver babies in Missouri.
Cole County Circuit Judge Patricia Joyce has issued a temporary restraining order against the midwives law. She scheduled an Aug. 2 hearing to consider a preliminary injunction. The bill is scheduled to take effect on Aug. 28.
The midwives provision was secretly attached by state Sen. John Loudon (R-Chesterfield) to legislation intended to make health insurance more affordable and accessible to some Missourians.
Several doctors groups sued. They claim the midwife language violates the Missouri Constitution by going beyond the bill's health insurance title and by changing the bill's original purpose.
Midwifery is currently punishable by prison time in Missouri.
Here is an interview we did with Sen. Loudon shortly after the controversy broke:
Downs: SAB Shouldn't Change Policies Until Situation is Resolved in Court
By Antonio D. French
The following statement comes from Peter Downs, president of the St. Louis Board of Education:
The Board of Education of the City of St. Louis is strongly opposed to the unlawful and flawed attempt to take control of St. Louis Public Schools away from the voters and their elected board of education. With broad backing from citizens of St. Louis, the Board is challenging this scheme in the courts and is committed to seeing that challenge to a successful conclusion.
The vagueness of the law involved is enormous. The effort to take control from the elected representatives of the people of St. Louis and abruptly give it to an appointed board with no plan for improved student achievement is wrong and misguided. Even if the law is found lawful, the division of responsibilities of the two entities will detract, not enhance, the gains this elected Board has achieved and will make the operation of the SLPS unworkable.
Nevertheless, people in St. Louis are looking for some relief from the confusion spawned by the State's takeover attempt.
What We Fight For
The elected Board is committed to building schools that not only teach how to read and compute, but also teach students how to think critically within various disciplines of knowledge; schools that prepare students to become active, involved, and just participants in our democracy; help students imagine and achieve new options for their places in society; and enable them to lead rich and rewarding personal lives.
This contrasts with the objectives of a prior Board, which led the call for a state takeover. The prior board, which was tied to Mayor Francis Slay and a small group that called itself the Black Leadership Roundtable (BLR), had a constipated vision of education that allowed room for only reading and math and blocked access to many educational opportunities and future choices for St. Louis children. In pursuing their narrow objectives, the prior Board actually drove down the performance of schools in St. Louis.
When it became clear that the people of St. Louis rejected the prior Board's constricted view of education, the prior Board and their supporters began calling for a state takeover, a "transition board," to thwart the will of the voters and prevent the development of democratic and effective public education.
Make no mistake, although the State's current attempt to change policy makers is based upon the performance of SLPS under the prior, narrow-minded Board, the effort to reinstate that same failed group as the new policy makers signals that the State has two goals: to prevent the development of strong, democratic public education in St. Louis, and to beat down democracy in the city.
Children First
As the elected Board of Education of the City of St. Louis, we are committed to fight for the futures of the children of St. Louis and the right to vote. We are committed to seeing through our lawsuit against State actions that serve only to sabotage public education in St. Louis.
At the same time, we recognize that individuals on the appointed board may not agree completely with the State's aims or the narrow vision of a prior Board. We will try to convince them to support measures designed to advance public education in St. Louis. We are very concerned that the programs and initiatives we approved, that are designed to improve student achievement, will suffer while the legal battle over authority continues.
In an effort to provide stability while the legal uncertainty is fully litigated, the Board of Education is open to discuss an interim working arrangement with the TSD under certain principles which would include an agreement that the previous actions taken by the elected Board go forward.
We urge the TSD not to interfere or prohibit any previous decision by the elected Board until a final decision is made by the courts. While both the elected Board and the TSD can and should continue their planning, the elected Board asks the TSD to commit with it to make no future operating decisions without the consent of the other board until the court renders a decision. The superintendent, of course, should do her best to communicate fully with the members of both boards.
In Monday's edition of the Mexico Ledger — out of Mexico, Missouri — reporter Tim Hare looks at House Bill 327. It seems there's a little bit for everybody in the the giant givaway legislation.
From the article:
Referring to its potential to help create quality jobs, Senator Wes Shoemyer urged area residents to encourage Governor Matt Blunt to sign House Bill 327.
Shoemyer made the appeal during a legislative breakfast held Friday morning at the Mexico Area Chamber of Commerce. He indicated final approval of the bill could have direct benefit for Mexico and its residents.
Among the provisions of HB327 are changes to existing elements of the Quality Jobs program, including raising tax credit caps, utilizing tax credit offsets, and providing for certain tax exemptions."
The article continues:
HB327 has recently come under greater scrutiny following revelations that Paul McKee Jr., a St. Louis-based developer with political ties, could potentially greatly benefit, especially from provisions in the bill that would provide tax credits eliminating interest costs and half of eligible land costs.
Sen. Delbert Scott of Lowry City has decried the bill, stating from the Senate floor in May, "It's an attempt to hide a big pot of money for one guy. The whole thing stinks."
While the governor does have line-item veto authorization on appropriations bills, the line-item veto is not permissible under state guidelines on tax credit legislation.
If necessary, Shoemyer said Blunt "could call a special session with a narrow call on it so he knows he would get clean legislation," and also questioned whether the St. Louis developer in question would be able to meet certain eligibility requirements.
In a statement from Superintendent Diana Bourisaw today, St. Louis Public Schools announced that 34 district employees have received "Reduction in Force" notices.
"The budget approved by the St. Louis Board of Education, which passed last month, authorized a reduction in up to 60 administrative positions," said Bourisaw. "We hoped that all reductions would occur through attrition, especially with the early separation program that the district has offered. However, this did not happen in all cases."
According to Bourisaw, all but 12 of those employees have rights to other district positions. She stressed that the administration "worked diligently to identify positions that could be reduced in a manner that would not affect classroom instruction."
Bonner will apparently no longer be coaching the Vashon basketball team either. According to Bourisaw, any coaching vacancies will be filled by district teachers.
Gearing up for his re-election campaign, Governor Matt Blunt unveiled his new campaign website today. The site, www.mattblunt.com, has been completely redesigned and sports new campaign colors.
The Governor will be in town today to sign the controversial Mo HealthNet bill into law. Check back later for video. (Sorry, no video.)
Democratic State Rep. Rodney Hubbard kicked off his state senate campaign with a strong show of support from elected officials, former elected officials, and even some Republicans.
[WARNING: The following video features music containing language which some may find objectionable. NSFW.]
Among those spotted at Friday's event at the Carr Community Center in north St. Louis:
State Senators Jeff Smith and Chris Koster (R-Harrisonville); State Representatives Jamilah Nasheed, Talibdin El-Amin, and Jim Lembke (R-St. Louis County); former State Reps Yaphett El-Amin, Betty Thompson (D-St. Louis County), and Mark Wright (R-Springfield); President of the Board of Aldermen Lewis Reed; License Collector Mike McMillan; former Mayor Freeman Bosley, Jr.; and Committeemen Jesse Todd (18th Ward) and Curtis Royston (27th Ward).
EXTRA: Watch Rodney Hubbard's full 23-minute speech at PubDef.TV
